Short answer
Trailer interchange covers physical damage to a trailer you do not own while it is in your possession under a written trailer interchange agreement. Non-owned trailer physical damage covers trailers you pull that you do not own when there may be no interchange agreement, such as a shipper’s trailer on a power-only load.
- On the motor carrier coverage form, trailers held under a written interchange agreement are their own covered auto symbol (69), which is why the written agreement matters.
- Neither coverage is liability. Your auto liability policy handles damage the trailer causes to others.
Trailer interchange: tied to a written agreement
IRMI defines trailer interchange insurance (endorsement CA 23 98) as coverage available under the truckers or motor carrier form that covers the insured's legal liability for damage to the trailers of others. It explains why the coverage exists: carriers often swap trailers to make scheduling work, and a trailer interchange agreement makes the carrier in possession of the trailer responsible for damage to it, whether or not it is attached to the tractor.
On the ISO motor carrier form (CA 00 20), symbol 69 applies to trailers you hold under a written trailer or equipment interchange agreement, and symbol 70 applies to your own trailers in another party's possession under such an agreement. Intermodal container chassis moved by drayage carriers are a common example. See trailer interchange insurance.
Non-owned trailer: when there is no interchange agreement
Plenty of trailers end up behind your tractor without an interchange agreement: a shipper's trailer on a power-only load, a trailer you rent short term, or a customer's equipment you move once. Non-owned trailer physical damage coverage is how many trucking programs cover those. It is often written on a different basis than interchange, for example on a legal liability or direct damage basis, with its own limit and deductible. Wording varies by insurer, so the important thing is to know which one your contracts require.
| Trailer interchange | Non-owned trailer | |
|---|---|---|
| Typical trigger | Trailer in your possession under a written interchange agreement | Trailer you pull but do not own, often with no interchange agreement |
| Common users | Intermodal, drayage, carriers swapping trailers | Power-only carriers, carriers pulling shipper or rented trailers |
| Policy mechanics | Motor carrier form symbol 69 or CA 23 98 endorsement | Endorsement or separate coverage, wording varies |
| What it pays for | Damage to the other party’s trailer | Damage to the non-owned trailer |
| Not covered here | Injury or damage the trailer causes to others (that is liability) | Same |
Which one do you need?
Start with the paper. If you sign interchange agreements (common with ports, railroads and intermodal equipment providers), you need trailer interchange at a limit that matches the agreement. If you haul power-only, read the broker-carrier agreement: it may make you responsible for the trailer and specify a dollar limit. If you do both, you may need both. And if your own trailers go out under interchange agreements, symbol 70 coverage protects them.
For the overall coverage picture, see truck physical damage insurance and broker-carrier agreement insurance requirements.
Read the indemnity, too
Interchange and power-only agreements often make the carrier responsible for the trailer regardless of fault. That is a contract question, so have an attorney review unusual wording, then match the insurance to it.
Common questions
Does my liability policy cover damage to a trailer I am pulling?
Generally no. Liability covers damage to others’ property, and most policies exclude property in your care, custody or control, which is why trailer interchange and non-owned trailer coverages exist.
I haul power-only for a broker. Which coverage do they want?
Check the agreement. Many power-only agreements specify trailer coverage and a limit. If there is no interchange agreement, non-owned trailer coverage is usually the fit.
Is trailer interchange the same as cargo coverage?
No. Trailer interchange covers the trailer. Cargo covers the freight inside it.
Sources
- IRMI, Trailer interchange insurance CA 23 98 (glossary). Definition, purpose, and responsibility under a trailer interchange agreement.
- IRMI, Auto coverage symbols (glossary). Motor carrier symbol range.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Coverage
Trailer interchange insurance: who pays when someone else’s trailer is damaged on your watch
Coverage
Physical damage: how your own truck and trailer get paid for after a loss
By operation
What insurance does a Texas drayage carrier need to pull containers under the UIIA?
Questions
What is the difference between scheduled auto and any auto?
Contracts and deadlines
A broker sent me a carrier agreement. What insurance does it actually require?